Taxation on investments in the stock market was introduced in Israel only in 2003.
The information we will bring about later is general and not comprehensive, and is not a substitute for clarification and personal consultation.
This tax applies to those who realize a profit in the stock market (we will not refer to those who are defined as traders in securities, for whom the rules are different).
This profit is a capital gain on investment in securities.
For example: a person who purchased a security (such as shares, mutual funds, ETFs, options or index-linked bonds) in the amount of NIS 20,000, and sold it after a quarter for NIS 23,000 - his profit is NIS 3,000, on which the tax applies.
In this quarter, inflation (reflected in the increase in the consumer price index) amounted to 2%, so the real profit will be NIS 2,940.
This amount will be taxed at a rate of 25% - that is, NIS 735.
The tax applicable to shekel bonds is 15%, and it applies to the nominal profit.
On foreign currency securities, the tax will be 25%, in which case the increase in the relevant currency rate during the investment period is offset.
Whoever sells a security at a loss can offset this loss from gains in securities.
The accounting in this context is annual (that is, for the tax year), and if you submit a report to the income tax - you can receive a "tax shield" for losses in securities in a certain tax year that were not offset. There are other aspects of taxation on investments in securities, such as taxation on mutual funds , the tax calculation if purchased or sold in parts, and more.
Photo: Police spokesmen // Cash,
This year was characterized by great volatility, in the capital markets in general and in the securities markets in particular.
The approach of the end of the tax year is an opportunity to deepen and expand the knowledge on the subject for those for whom it is relevant, to prepare for everything required for the end of the tax year and to consult with experts and professionals if necessary.
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